Consumers have just about infinite choices when it comes to industries like yours, so their loyalty must be fought after harder than ever. One of the easiest ways to earn this trust is through value-add programs and services, which make choosing your business more rewarding compared to any competitors. Services like roadside assistance loyalty programs are often enough to push someone to commit to one company over another.
In an era where customer acquisitions are getting more expensive than ever, being able to rely on your customers’ loyalty can provide a critical underpinning to your business’s bottom line. Research shows that customers who stick with your brand tend to spend 67% more than the average new customer.
Other studies show just being a member of your loyalty or rewards program can make a customer spend 37% more than average. Having a great customer affinity program filled with value-packed perks therefore doesn’t just make your customers more committed, it also makes them more profitable.
These statistics are the tip of the iceberg when it comes to the benefits of having a customer loyalty program for your business. Learn about the other advantages your company will reap by considering the following 5 biggest reasons your business needs a loyalty program.
1. Give Customers an Incentive to Choose You Over the Competition
When making an apples-to-apples comparison, consumers often face tough choices. They often end up splitting hairs on service offerings, prices, or customer reviews in order to decide which business they feel most deserves their hard-earned money.
Having a loyalty program gives a potential customer that extra selling point bullet in your favor. At the end of the day, they may even feel that their choices are roughly equal if not for the extra value-added perks they get in exchange for their trust. Suddenly, the customer can pick out the difference between the two companies at a glance, with the one that adds convenience or rewards likely to win their favor.
If that assertion seems like an exaggeration, consider this: 72% of those in Gen X or Gen Z (post-millennial) say that a customer loyalty program would be enough to convince them to choose one brand over another. 68% of millennials and 56% of Baby Boomers agreed.
2. Stay Up to Date With Increasingly Demanding Consumer Expectations
Some customers may even be savvy enough to be aware of multiple loyalty or rewards options. In these cases, the business that offers them the most value and convenience will often be the one that wins out — not necessarily the one with the best service or products.
In fact, a full 65% of consumers say that getting a “great offer” is one of the most important factors in their decision to support a brand — more important to them than customer service. 48% of people say they won’t even buy from brands that don’t offer some sort of discount or free perk.
If your business does not offer loyalty rewards or value-add perks, you may not even register on their radar when they weigh their options. They may simply pass you by for a competitor who gives them more perceived value for every dollar they spend.
3. Deepen Affinity So That People Come to Love Your Brand
Having loyalty rewards provides an incredibly important component to the buying experience post-purchase. Even customers who did not consider your program — or who were not even aware it existed — may find themselves suddenly feeling strong affinity towards a brand that has their back.
80% of consumers say that they have grown to love brands over time. For comparison, just 15% say that it was “love at first sight.”
When offering perks, such as roadside assistance loyalty programs, you provide a chance for your customers to suddenly have a story about how your brand helped them when they were in need. For instance, if signing up for your credit card or buying new set of your tires meant that one day when they were stranded a tow truck came to their rescue free-of-charge, they may hold onto that memory as a glowing example of what makes your brand great.
71% of consumers who are loyalty members say that their membership is a “meaningful part” of their relationship with certain businesses. Almost as many consumers also say that they are more likely to recommend brands to peers when the business offers a solid loyalty program.
Customers’ affinity therefore doesn’t just reduce churn, but it can also add to your sources of reliable customer leads. One happy customer can thereby grow your profits significantly.
4. Provide a More Complete Set of Services, Bolstering Your Brand
The best loyalty options for customers don’t just give value; they also reflect positively upon your brand. Having a loyalty perk that is a good fit can enhance your overall brand persona, making you more personable. It can also round out your offerings in a way that makes your services feel more complete.
Going back to the free roadside assistance program example, consider what offering that assistance communicates about a brand. A credit card company could essentially say that they are there to help the card holder through genuinely tough life moments, not just during purchases.
A fleet operator similarly could give every single customer they serve added peace of mind, saying essentially that: “We stand behind our vehicles. Even when they let you down, we’re here to get you going again and keep you on the road!”
5. Reap All The Benefits of Roadside Assistance Loyalty Programs at a Low Cost to You
A final noteworthy factor of customer affinity programs would be that they can often be provided at a minimal cost per-account for the business that offers them. Businesses therefore reap all of the benefits mentioned above with very little traded off.
Many great loyalty programs offer businesses the incredible convenience of not having to manage the program at all. Instead, the services are offered with their own customer support, their own accounting, and their own logistics. You are even able to provide the service in-brand, meaning that all third parties involved still proclaim that they are part of your brand and your business model.
Don’t let opportunities that loyalty perks give your business pass you by in 2019. Take a look at the roadside assistance loyalty programs we offer, and consider how they can make your business one worth falling in love with.